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Ofgem’s latest bit of grandstanding has had the desired affect: the energy
companies have got another bashing, which will fuel public anger at them —
and justify the regulator’s sudden “get tough” stance on the industry.

But unpopular as it may seem to point out, the new profit figures published by
the regulator are far from as outrageous as they might appear.

First, Ofgem has chosen not to publish the profit margins in percentage terms,
no doubt to make the increase look bigger. On this basis, in June energy
companies were making an average profit margin of just over 1 per